National Republican., 1887-01-15

rates charged to FL Paso are but fair, as Is
| shown by the gross earnings and the gross
expenses of the road. leaving but u very
! narrow net profit.
The shorter distance Is not charged any
more because of the less rate for the longer
distance. Indeed, the longer distance helps
| the railroad company to maintain Itself
while without that help perhaps they could
not do the shorter business at all. Is this
| Congress prepared to say that small earn
ings shall be despised, that they shall not
be secured when greater can not be had!
Are they prepared to deny to individual
shippers and communities the benefit OF
their more favorable location, whether
made so because OF the geography or topog-
raphy of the country, or by artificial meansY
IL is the misfortune OF some places not to
be so well located, and not the fault of the
more favorable places that nature or art
has given them superior advantages. 1t
seems to me that Congress might with
equal propriety deny the shipper the right
to avail himself of these natural or artificial
advantages as to deny to the railroad the
right to avail itself of opportunities to meet
competition.
only certain charge. A greater charge
becomes pronibitory. very large part of
| u e unmanufactured raw material of this
country belongs to this class, paying u
trtie over the additional cost consequent
upon Its movement, developing business
that may pay better, and giving its small
portion of net profit above the cost of
movement toward the large items of fixed
and sem'tixed expenses. Whether a road
is not determined by the percentage Of
operating expenses. Thus road
carrying valuable goods and do
ing small business may find its
percentage OF operating expenses upon the
amount earned very small, whereas, II
there could be thrown upon 1t In addition n
large business Of cheap transportion, its
earnings would be larger, but the per cent.
OF operating expenses would be increased;
and to the extent that there was net earn
ing on this cheap class of freight, just 30
Tar the company would be benefited. The
long haul at cheap competing rates is really
beneficial to the short haul ut non compel.
ing rates. 1t may be that neither alone
would maintain the road. II understand
this bill correctly, under II the long lines
OF railroad passing through different states
will have to give up one or the other. 1t
will be practically Il regulation OF freight
within the boundaries OF IA state and making
II barrier OF the boundary of state to the
free Transmission Of commerce.
Since the first road was built IN
the United States up to this time
the railroads have substantially fixed their
own rates for service, until to-day the rate
is such as was not dreamed of as possible
twenty years ago, nor was 1t believed pos
sible even ten years ago. The whole coun-
try is developed. No product has suffered
for want OF movement. The general rail-
road management OF the country is careful
10 consider what the cheap unmanufactured
products OF the country can afford to pay,
and make their rates with view that pro.
duction shall not be hindered. The rates
charged for manufactured goods, almost
without an exception, do not affect the
producer or the consumer. III The rates OF
freight upon manufactured articles were re.
duced one-half the probability is that there
is nothing that moves by railroad oyer the
longest line In the country whose price To
the consumer would be affected or would
he taken into consideration by the manu-
iacturer but the fractional part Of a cent
becomes serious consequence In the long
haul to moSt of the raw products of the
country. The higher the maximums the
lower the possible minimums.
Thus, in my state, the maximum rates
were 10 cents per ton per mile. With an
average cost OF 2cents mile for movement,
which was about the average at one time,
ton Of freight moved at Is cents a ton
per mile, would enable the railroad to move
IA tons at the minimum rate OF ! cent Il ton
per mile. There was at that time about l
per cent, of the business done at the maxi
mum rate, while the other 80 per cent. was
done AZ rates governed by circumstances
and influences which the railroad company
could not control,
This bill seems to me not only to deny
competition by railroads, which exist almost
throughout the length and breadth Of the
country, but TO exhibit tendency to foster
waterways to the positive encouragement
OF the railroad interests, II It aimed but TO
insure the water lines Of communication